Shows offset Amity's share slump, Gocerler downgrade

Amity Oil has extended its successful run in Turkey after identifying eight potential gas zones from wireline logs at the recently spudded Alpullu-1 well. However, the market has reacted badly to news of a downgrade to the cornerstone Gocerler gas field, selling the stock down yesterday to 87 cents before recovering to finish at 95 cents after opening at $1.13.
Shows offset Amity's share slump, Gocerler downgrade Shows offset Amity's share slump, Gocerler downgrade Shows offset Amity's share slump, Gocerler downgrade Shows offset Amity's share slump, Gocerler downgrade Shows offset Amity's share slump, Gocerler downgrade

Amity said preliminary studies now anticipate there may be a further 20-25% downgrade in the size of the Original Gas In Place determinations announced on 1

September this year. This was a P90 figure of 32 bcf, P50 of 44 bcf and a P10 figure of 56 bcf.

While it is yet to be determined whether the Alpullu-1 drilling results are commercial in quantity the result is encouraging as more reservoir sand has been discovered in the section than originally expected.

Preliminary interpretation suggests that the eight possible gross gas bearing zones are spread between 332 and 747.5m depth and are up to 30m in size.

All possible interpreted gas zones from wire line logs had corresponding mud gas shows while drilling. Additional strong mud gas shows were recorded deeper in the hole and corresponded to limestone zones with thin sandstones.

The testing program will aim to determine if these sand units are laterally continuous and contain commercial quantities of gas.

Alpullu-1, is updip from the Pancarkoy-1 well, which had strong gas shows and possibly by-passed gas pay, interpreted from limited wire-line log data. The structure has a coincident seismic amplitude anomaly, suggesting the presence of gas.

The Alpullu-1 well is located in the 100% Amity owned and operated 3599 exploration block in the Thrace basin of Western Turkey.

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